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A Quick Budgeting Guide For Overseas Filipino Workers (OFW) - Things You Must Know

A Quick Budgeting Guide For Overseas Filipino Workers (OFW) - Things You Must Know

14 Dec 2022

Working overseas is the dream of many. The most specific and common reason for that is higher pay. People want to provide their families with a good life. According to research, in 2015, there were about 2.4 million overseas Filipino workers (OFW), and the number has grown to over 12 million, stimulating the remittance inflows. The Bangko Sentral ng Pilipinas reports a 3.8% year-on-year rise in remittances to the Philippines, reaching $2.84 billion in September 2022. It shows that several diasporas send money to Philippines from overseas for financial support back home.

However, a study reveals that 10% of OFWs remain financially unstable, while 80% return to the Philippines with no cash. You must learn much if you are a new overseas Filipino worker. At the start, people get overwhelmed by every other foreign attraction and spend more than they should.

When as an OFW, you work hard in a foreign country, your main goal is to save and send money to the Philippines for the bread and butter of your family. Securing your future by saving up some money is equally important.

Here are some tips and tricks to help you live a simple but budget-friendly life.

How to Budget and Make Savings as an Overseas Filipino Worker (OFW)?

It may be challenging initially to budget and shrink your expenses. But, with little effort, you can achieve your goals and become financially stable. Following are some helpful tips on budgeting while living in a foreign country.

Enrol Yourself in Online Banking

If you are an overseas Filipino worker, you must face the situations of money transfers quite often. Rather than following traditional banking methods, it is advisable to shift to online banking. Link your loved one to the same online bank. In this way, you can send money digitally to the Philippines. Online banks do not cause extra charges for the transfer, thus helping you save bulk money. Moreover, the best exchange rates are provided that help you send more money to the beneficiaries after converting an international currency to the Philippines Peso.

Apart from the monetary benefits, there are numerous other advantages of online banking, which include swift transfer, tracking facility, and easy-to-go service.

Keep a Clever Eye on Sales.

Try to do the maximum for your wardrobe when it is sale season. You work very hard to make a living and do not want to spend all the money on your clothes. But looking chic is equally essential. Keep checking the websites of the brand you like. You do not want to miss out on any sales. This is the best way to live in style while on a budget.

When you visit home, everyone wants something. Whether it is friends or family, you can buy stuff for your relatives when there is a clearing sale. You can order from the brand’s websites and make online payments. Shopping online will also save you from going from store to store to find the best. 

Benefitting from deals and promotions helps you save enough while fulfilling your needs smartly. In this way, you can have more funds to send home. ACE Money Transfer offers you the most economical transfers with the highest exchange rates. The firm is currently offering fee-free transfers so you can make an instant online money transfer to Philippines without any cost involved.

Save Something to Feed on After Retirement.

When you are old and tired, you deserve to get some rest. Then you won't be able to work like today and earn dollars. It is very important to have separate savings account that you will make to use after retirement. Make a pact that you can not take money from that account, no matter what. In this way, you will also make money for your future life. Make a portion of your income that will go into that savings account. You can start from 5%.

You can also get your money working for you by investing it in good things like the stock market or something productive. Just think about your future before putting your money on fire.

Do the Research before Opting for an Employment Opportunity

Do the proper research before you make up your mind to move out. Do not haste for the dollars you are being offered. You must have heard that living standards or costs are higher in developed and luxurious countries. For example, you can have two breakfasts in the Philippines for the amount of money you will likely spend for a cup of tea in one sitting in a foreign country. High living rates are why developed countries agree to pay you more elevated amounts.

Research how much you will be left with after spending on essentials. If the savings are less than what you already make in the Philippines, do not hesitate to negotiate for a good salary package.

Adopt Habits that Help You in Budgeting

Say no to extra spending. Good budgeting techniques are life saviours. If you simply follow the principle of spending on what you need and not what you want, your savings will become twice. Don't get overwhelmed by every other thing you see. Evaluate before buying. Ask questions yourself. Will you need it, or will it just add to your luggage? Note down every spending of a day. These simple rules can do miracles in your life. 

Often OFWs end up paying extra money to transfer funds to their loved ones from abroad since they either use conventional methods like the Kerb market or don’t know about the best methods. If you want to maintain a good budget, send money to Philippines online via a credible remittance provider like ACE Money Transfer, which offers several benefits to customers.

Have a Record of Remittances

Every OFW want to do money transfers to the Philippines to provide their family with a better life. But it is essential to separate remittances from your savings. Being away from home, you do not know what things your money is spending. You do not want an empty pocket or house when you return to the Philippines. It is a difficult thing to do but equally important. You should know the amount that will be enough to run a good house. Send no extra money apart from emergencies. This will keep you from future regrets.

Get Your Insurance as Soon as Possible.

Many overseas Filipino workers ignore insurance and get financial cuts from mishaps. This is a world of uncertainty. Accidents are happening every other day all around the globe. As mentioned above, living costs in developed countries are twice as in the Philippines. You will give away a large sum of money if you get hurt. So it is better to go for medical insurance.

If you are the only winner of the family, get your insurance right now. You do not want your family to suffer in case of any misfortune. Getting insurance for the assets will erase the maintenance costs.

The Best Way for Good Budgeting and Monthly Savings

Sometimes you cannot stop yourself from overspending, and spending feels right, even if you are short of cash. But you also have to manage funds to transfer back home since the love for your family transcends every barrier. Foreign workers often do not pay attention to savings and are blinded by their higher salaries. Conservation is equally important as earning. The amount you save may be different, but the technique for saving is the same regardless of how much you make. Following the above-mentioned budgeting guide for overseas Filipino workers and sound financial planning is all you need to do.

You must remain aware that overspending only feels good in the moment but adds a burden for the future. So many OFWs face difficulty in sending money to their loved ones after running short of cash. ACE Money Transfer is the best online service provider, which will increase the ease of transferring money and save you from extra cuts of third-party charges and bank fees. So join ACE family to make an instant, secure, and economical money transfer to Philippines with the highest exchange rates.


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